Why African businesses fail

The high mortality rate of millennial businesses in Africa has been attributed to inadequate attention to governance issues in business.

“Oftentimes, the practice of emplacing corporate governance structures is not treated as a priority, and this ultimately checkmates the growth of promising businesses,” Ije Jidenma, president and chairman of the governing council, Institute of Directors (IoD) Nigeria, said.

Jidenma spoke at the Young Directors Forum (YDF) with the theme, ‘Unlocking millennial directors’ potentials: The place of corporate governance’ recently organised by IoD in Lagos.

According to her, the YDF was created by the IoD to serve as a network of young, talented and up-coming board leaders who are keen knowledge seekers interested in taking advantage of the Institute’s platform to build capacities in corporate governance skills and practices.

She further stated that members of the forum can access the institute’s free mentorship services, while creating strong peer networks that add value in the course of discharging their roles and responsibilities as directors.

“Ultimately, they are groomed to become IoD chartered directors who give back to society by mentoring others and supporting the growth of IoD Nigeria. The forum is also IoD Nigeria’s way of giving back to the society by committing to building a pipeline of future generations of technocrats, stellar board directors and business icons whose businesses outlast generations because of their ethical leadership practices and sound corporate governance,” Jidenma stated.

Ndidi Okonkwo Nwuneli, the guest speaker at the event, said young directors need a combination of skills and expertise that are appropriate to the different stages of development of the organisation. According to her, the young directors must be strategic in setting the organisation’s purpose, values, objectives and direction in line with the strategy and policy formulation of the business.

She added that young directors as members of board must be able to manage top appointments and succession with the capacity to shape organisational culture, and uphold values. She stated that they must also develop an oversight for ensuring effective executive execution of projects; ensuring cost-effective management of corporate resources, and overseeing the financial management of the organisation, by monitoring health, compliance, performance and risk.

In her advice to the young directors, Nwuneli urged them to invest in building a track record of impact and not fiction. “Excellent and integrity have no hiding place – commit to life-long learning and bringing your A game every time. Invest in building a community of support – champions and sponsors,” she stated.